Dongguan, a shoe manufacturing enterprises of the short-cut transition
Chi Chi left to the market, the time is not sufficient, either through the expansion of the market occupied, either on the market, such as shrink and die.
When Li Mei on November 24 in the morning into the office, first saw her on the desk of the report card promotions. She was finally able to grow a breath. Li Mei is the Bank of Dongguan shoe or Limited (referred to as, silver or shoes) north of the area manager. In the past three days, she’s Shandong Province, 50 in Ginza Mall and other brand shoes fought a fierce encounter.
This day, she had to shuttle to and from these non-stop shopping, at all times to monitor the Bank’s or women’s footwear brands Chi Chi (Chch) of sales. Li Mei in 2007 also some resistance to the mall, “promotional price” because the silver shoes or always have little benefit. However, Li Mei is now gradually got used to it.
“Competitors have participated in, you do not have all the reason to give them the chance to market.” Mei said that although the factory is almost no profit, but taking into account the top shopping centers, as well as the annual sales goal, she decided to let women pray pray Shoes war.
Record was far from satisfactory, Chi Chi’s sales ranking in the middle reaches. Guo Lu Jinan is located in Ginza Mall on August 1, for example, “from 9:00 am to 3:00 p.m., Chi Chi’s revenues have more than 10,000 yuan, a lot of brands sold only Sansi Qian Yuan.” Guo Lu told reporters. She is only the beginning of June this year in the city to sell the Chi Chi, after she had been selling Li Ning sports shoes.
Chi-Chi’s market performance did not let thousands of miles away in silver shoes or Qi Yao-chang, chairman of the physical and mental relaxation. Although the Chi Chi has been operating for more than three years, the market has a small brand, but Qi Yao-chang is very well aware of the “Chi-Chi will have to deal with China is increasingly intense battle for the brand.”
Brand competition in the second half of 2007 has shown. Chi-Chi’s sales in 2006 than in 2005, up 20% in 2007 increased by 30%. However, profit growth is not satisfactory, only 20%.
On the face of it, has almost Qi Yao-chang from the export orders get out of the market, but that does not mean he can outshine others on Houjie in Dongguan. As the situation changes, many export processing enterprises may have reached the domestic market, with brands such as the Chi-Chi for the domestic market.
“Europe and the United States market is sluggish, Daphne’s boss last year, we just said, there are thousands of foreign brand names lining up to negotiate with him, he would like to use the platform to enter the Chinese market.” Asia Footwear Association Secretary-General Li told the “Chinese entrepreneurs.” He predicted that “the Chinese brand competition has only just begun, in the context of a global recession, the Chinese market will become the world’s mainstream brand of the playing field.” Brands are still on the growth and nurturing of Chi Chi, the challenge is not The record speaks for Yu.
“The brand now operating in the sixties and seventies by companies in a capital preservation or loss of status in the future there will be continuous access to the brand and out to see who can adhere to it.” Qi Yao-chang also aware of the tragic competition. Qi is the identity of the other leather footwear industry in Dongguan City, vice president of the association.
Dongguan leather footwear industry association estimates that in 2008, Dongguan will be the 10% -20% of the shoe prices closed down more than 30% of the business and a loss in the same state of trying to turn the struggling, only 30% -40% of the companies making profits.
Exploration of the brand
In an annual output of 1,500,000,000 pair of shoes (a quarter of total production, one-tenth of the world), Dongguan Houjie, silver or shoes can be regarded as an absolute alternative.
Qi Yao-chang Houjie born and brought up in Houjie. In 1980 after graduating from high school to enter Hong Kong to a shoe factory work. 28 years ago, Qi Yao-chang from the shop in charge of production workers to do step by step, and then to professional managers, up to be on Houjie annual salary of 300,000 “well-paid employees.”
In 1997, his Hong Kong home from his shoe factory workers out of business, set up a factory on behalf of more than 100 people. In 2000, the processing enterprises in the face with each other to keep the prices down and profits growing thin, Qi Yao-chang began designing their own road to the Goldlion, crocodiles, a grand Paul, Belle, and other brands to do the design and manufacturing. Qi Yao-chang at that time and has a reputation rise or two plants, nearly 2,000 employees and annual production of 800,000 pairs of high-end shoes.
To the brand in the domestic R & D products, OEM processing, Qi Yao-chang of the domestic brands and chain operations with sales contacts and understanding. “I see the opportunities, but also to other people aware of the OEM business is done the greater, the higher the risk, is almost the last being led by the nose is not conducive to long-term and stable development of the enterprise.” Qi Yao-chang said .
In 2003, after SARS, Dongguan great distress suffered a shortage of migrant workers. Chang believe that Qiyao own business sooner or later have to face a shortage of human resources bottleneck, began thinking to do its own brand.
In 2005, Qi Yao-chang was going to try to create their own brand names, a friend told him that Chi Chi is looking for partners. Qi Yao-Chang Chi-Chi made to the original foundry, well aware of its location and style.
Chi Chi in the women’s sector is not a relative unknown. In the 1970s, the Italian Palladian in Bali A cave opened “Chch” shoe store works of art package for upper-class women’s fashion design classic leather handbags and shoes. In 1987, a Taiwan businessman to introduce Taiwan. In 1997, the Taiwan businessmen in the mainland started to promote, one after another in Sichuan, Shandong and other places to open a store. However, due to early “avant-garde fashion,” positioning, Chi Chi has been going from bad to worse to operate.
Qi Yao-Chang Chi-Chi think is a good choice, was found on the other side of cooperation. In June 2005, Qi Yao-chang of Taiwan businessmen and cooperation in the establishment of a shoe or silver, Qi as chairman of the board, the original brand to retain the basic operation of the team.
In July 2006, Taiwan had to withdraw from a variety of reasons to cooperate, the backbone of the system sales, even in the shop more than 200 workers was taken away. Or silver shoes has become almost a shell, however, Chi Chi brand has to stay in the shoe or silver. More trouble yet to come. Know from the partners, to launch an attack on shopping malls removed from the Chi-Chi. Let everyone know even the original partners, “not by Chi-Chi”, “Chi Chi the Zuobuxiaqu.”
Silver shoes or all of a sudden Neiwaijiaokun into position. Bishi, Qi Yao-chang of brand marketing was still a layman. Thanks to the mobilization of emergency when he was a factory worker in the production had difficulties, but the loss of several million dollars.
In order to restore the marketing of an unfavorable situation, Qi Yao-chang learning-by-doing. He began to shopping malls across the country “inspection” to find the store in the mall location, next to the brand, as well as pricing, and separate each of the franchiser and enhance the understanding of their needs. Qi Yao-chang and even designers with two or three times to France, Italy, where the designer as well as trade associations learn to learn.
Qi Yao-chang is a prudent and full of lack of vigilance without flexibility. “It’s all just to find out what the brand is, how do the brand.” Qi Yao-chang said. In 2007, Chi Chi begun to stabilize after the beginning of Qi Yao-Chang Sun Yat-sen University to study marketing EMBA courses to improve their marketing in the level of theory.
Have their own brand, Qi Yao-chang to narrow the size of the foundry production and reduce reliance on OEM processing, the focus will be invested in brand building. The number of enterprises from 2000 who is now reduced to the Wuliu Bai people. With an annual output of nearly 400,000 pairs of shoes. In the domestic brand sales to nearly 200,000 pairs.
Chi Chi there was a certain degree of market infrastructure, coupled with three years of training has been stable at an early stage. Just a few days before an interview with reporters, Egypt to find agents or silver shoes, like their agents in Cairo.
“Fortunately, we have to transition than earlier. If this situation continues in transition, on a very difficult.” Qi Yao-chang fortunate than themselves Houjie other shoe companies, as early as the operation in 2032.
But it seems some of the industry, although Chi Chi avoided Belle, hundreds and thousands, most Saturdays, and other mid-range women’s competition, but the price 600-1000 yuan in the women’s competition will become more and more acute. “Chi Chi left to the market only two years, either through the expansion of its market or the market is shrinking, dead.” Chi Chi has just become the agents of Jiangsu Mr. Jiang said.
Houjie limited
To buy a relatively mature brand than a brand new, slightly less risks and difficulties. Qi Yao-chang is taking the short cut of their own brand, a brand from scratch and removed from the building and find out. Qi Yao-chang, but also new problems: easy to buy the brand, brand integration is difficult, more difficult for brand development. “Out of partners, brand promotion, progress slowed down, restricting the funding of the rapid development of the brand.”
Houjie on turnover of 100 million, the amount of profit that only a few of the millions of shoe enterprises is generally the case. Venture more than a decade, started the foundry to do by Qi Yao-chang capital accumulation is not strong. From the start, Qi Yao-chang has not had dealings with the bank. “Short-term liquidity facility will soon return, real sales is the lack of funds from investment to the recovery of a long cycle.’s Short-term bank loans little use.” Qi said.
Qi Yao-chang that they can not afford to go to vote in the CCTV advertising, do not need to put in TV ads, but in some fashion magazine ads may be better. So far, he has only fashion magazine “Ruili” put on the four ads. In addition, each a self-built network is the cost of an expensive investment, generally around 500,000 yuan. Or silver shoes had planned to set up three years at the beginning of construction of the National 200 sales outlets, but now only 60 points.
In 2008, Dongguan Houjie characteristics were identified as pilot industrial upgrading in the town, the Government introduced a “Houjie Town to upgrade the industrial structure adjustment and transformation of a pilot program of work”, such as silver shoes or 38 were classified as major support from the business transformation and upgrading of a Brand-name private enterprises. Private Houjie Town Office staff, the 38 enterprises will be able to enjoy priority in the city of Dongguan to support corporate finance. However, Qi Yao-chang does not intend to apply. Ministry of Commerce in Dongguan to do research, Qi respect, “the Government’s support for some time is too long and too complicated.”
Brand Integration is difficult, lack of funds, lack of qualified personnel and the loss of Qi Yao-chang, and so are their own brand of direct restrictions on the road, and the largest constraints or from their own limitations.
Lee Doo-brand marketing agency co-founder Lee Doo-analysis, Dongguan manufacturing brands to upgrade the process of transition will face many problems. “Upgrade shop is not that simple. Used to be his own doing, others to sell. It is time to do their own sales. Products, brands, marketing, the spread of the four stages of the need to upgrade. This process, lack of business ideas, but also a lack of talent. “Lee Doo-believe.
“Why Wenzhou, Fujian people to do the success of the brand? Aokang, Cornell, owner of Red Dragonfly markets are doing, Ding Zhizhong Anta who also sell shoes. Foundry to do so with brand marketing is to do two completely different concept . Dongguan in a lot of people have tried to do its own brand. (They) used as a model of the plant have failed to do marketing. “Li Peng that the lack of enterprises in Dongguan shoe brands and channels of relevant experience.
Qi Yao-chang to have their own brand. “We are not the marketing concept and strategy in the first place. We are in the first place is the product of research and development and quality improvement.”
“Manufacturing is the province out of money. Pipeline can change a few dozens of workers labor costs, a manufacture-oriented. Brand is a step-by-step strategy for the money, and then to make money.” Dongguan is too joint operation of the total brand SUN Ke-qiang supervisor that prices HouJie shoes have a first-class talents, first-class research and development, but to draw the brand, “thinking is the key to the problem.” SUN Ke-qiang that.
However, Qi Yao-chang personnel are aware of the importance of the Chi-Chi’s. He has started from the market looking for professionals to run Chi-Chi. Nov. 23, Sun Shou-ming from Nanjing to Dongguan, he will become the assistant Qi Yao-chang. Sun has thousands of degrees, on Saturdays, such as domestic cats kiss women’s first-line brand marketing experience.
Compared to the thousands of Chinese stores, and an annual turnover of more than 10,000,000,000 Belle, even when compared with annual sales of over 600,000,000, in preparation for A shares listed on Saturdays, Chi Chi can also be regarded as the initial stage of the Brand. Li Mei, Guo Lu and Sun Shou-ming behind, “Made in China” are working to overcome its limitations, the stubborn stance in order to grow.
“The original manufacturing process is now doing is brand marketing, I need to add more knowledge.” Qi Yao-chang are trying to break his own, and he really needs to do to overcome the long-term foundry Houjie of limitations.

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